Affordability is reshaping consumers' car choices, survey finds
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Americans may be burdened by inflation, but they're still willing to buy cars, especially used ones, according to new research shared first with Axios.
Why it matters: While cost pressures persist, demand for vehicles remains resilient because of how essential they are to work and opportunity.
Between the lines: Vehicle access is non-negotiable for many households, according to the quarterly survey from Santander Holdings USA, conducted in late March via Morning Consult.
- 79% of the 2,150 respondents — defined as middle-income Americans earning up to roughly $167,000 a year per household — said they rely on a vehicle to get to work.
- 71% say they would sacrifice other budget items to maintain access.
- And nearly half are driving more than a year ago, reinforcing how central cars are to economic participation.
State of play: Affordability is reshaping consumer choices, though. What's in:
- Used rides: 3 out of 4 respondents said they'd prefer a used vehicle with more features over a new entry-level model.
- Fuel efficiency: it's becoming a bigger factor in the purchase decision, with 70% of people saying they were more likely to consider a hybrid or electric car than they were a year ago.
What they're saying: "Middle-income consumers are making pragmatic, budget-conscious choices because access to a car is essential," said Betty Jotanovic, President of Auto Relationships at Santander Consumer USA.
The intrigue: More than half of middle-income Americans who shopped online in their car-buying journey used AI to make more informed decisions on vehicle and financing options.
